RESTRUCTURING

3 Months Ended

Jun. 27, 2020

Restructuring and Related Activities [Abstract]

RESTRUCTURING

3. RESTRUCTURING

On an ongoing basis, the Company reviews the global economy, the healthcare industry, and the markets in which it competes to identify opportunities for efficiencies, enhance commercial capabilities, align its resources and offer its customers better solutions. In order to realize these opportunities, the Company undertakes restructuring-type activities to transform its business.

In July 2019, the Board of Directors of the Company approved a new Operational Excellence Program (the "2020 Program") and delegated authority to the Company's management to determine the detail of the initiatives that will comprise the program. The 2020 Program is designed to improve operational performance and reduce cost principally in our manufacturing and supply chain operations. The Company estimates that it will incur aggregate charges between $60 million and $70 million in connection with the 2020 Program. These charges, the majority of which will result in cash outlays, including severance and other employee costs, will be incurred as the specific actions required to execute these initiatives are identified and approved and are expected to be substantially completed by the end of fiscal 2023. During the three months ended June 27, 2020, the Company incurred $3.5 million of restructuring and turnaround costs under this program. Total cumulative charges under this program are $15.4 million. There were no restructuring and turnaround costs incurred during the three months ended June 29, 2019 under this program.

During fiscal 2018, the Company launched a Complexity Reduction Initiative (the "2018 Program"), a company-wide restructuring program designed to improve operational performance and reduce cost, freeing up resources to invest in accelerated growth. During the three months ended June 27, 2020 and June 29, 2019, the Company incurred $0.5 million and $2.0 million, respectively, of restructuring and turnaround costs under this program. Total cumulative charges under this program are $58.7 million. The 2018 Program is substantially complete.

The following table summarizes the activity for restructuring reserves related to the 2020 Program and the 2018 and Prior Programs for the three months ended June 27, 2020, substantially all of which relates to employee severance and other employee costs:

(In thousands)	2020 Program		2018 and Prior Programs		Total
Balance at March 28, 2020	$	1,136	$	1,512	$	2,648
Costs incurred, net of reversals	1,166		(101)		1,065
Payments	(541)		(633)		(1,174)
Balance at June 27, 2020	$	1,761	$	778	$	2,539

The following presents the restructuring costs by line item within our accompanying unaudited condensed consolidated statements of income (loss) and comprehensive income (loss):

	Three Months Ended
(In thousands)	June 27, 2020		June 29, 2019
Cost of goods sold	$	503	$	159
Research and development	319		14
Selling, general and administrative expenses	243		796
	$	1,065	$	969

As of June 27, 2020, the Company had a restructuring liability of $2.5 million, of which $2.1 million is payable within the next twelve months.

In addition to the restructuring costs included in the table above, the Company also incurred costs of $2.9 million that do not constitute restructuring under ASC 420, Exit and Disposal Cost Obligations, and which the Company instead refers to as turnaround costs. These costs consist primarily of expenditures directly related to the restructuring actions and include program management costs associated with the 2020 Program and operational performance improvement initiatives.

The tables below present restructuring and turnaround costs by reportable segment:

Restructuring costs	Three Months Ended
(In thousands)	June 27, 2020		June 29, 2019
Plasma	$	568	$	153
Blood Center	154		42
Hospital	129		203
Corporate	214		571
Total	$	1,065	$	969
Turnaround costs	Three Months Ended
(In thousands)	June 27, 2020		June 29, 2019
Plasma	$	—	$	48
Blood Center	16		—
Hospital	9		—
Corporate	2,910		1,010
Total	$	2,935	$	1,058
Total restructuring and turnaround costs	$	4,000	$	2,027